Sunday, December 03, 2006

BusinessWeek has an interesting report on Iran, which lends credence to what I mentioned recently about the way forward on that front:

Yet Iran has a surprising weakness: Its oil and gas industry, the lifeblood of its economy, is showing serious signs of distress. As domestic energy consumption skyrockets, Iran is struggling to produce enough oil and gas for export. Unless Tehran overhauls its policies, its primary source of revenue and the basis of its geopolitical muscle could start to wane. Within a decade, says Saad Rahim, an analyst at Washington consultancy PFC Energy, "Iran's net crude exports could fall to zero."That's not to say Iran doesn't have abundant resources. The country's 137 billion barrels of oil reserves are second only to Saudi Arabia's, and its supply of gas trails only Russia's, according to the BP Statistical Review of World Energy. Getting it all out of the ground, though, is another matter. Iran has been producing just 3.9 million barrels of oil a day this year, 5% below its OPEC quota, because of delays in new projects and a shortage of technical skills. By contrast, in 1974, five years before the Islamic Revolution, Iran pumped 6.1 million barrels daily.The situation could get even tougher for the National Iranian Oil Co. (NIOC), which is responsible for all of Iran's output. Without substantial upgrades in facilities, production at Iran's core fields, several of which date from the 1920s, could go into a precipitous decline. In September, Oil Minister Kazem Vaziri-Hamaneh suggested that with no new investment, output from Iran's fields would fall by about 13% a year, roughly twice the rate that outside oil experts had expected. "NIOC is likely to find that even maintaining the status quo is a mounting challenge," says PFC Energy's Rahim.

As I said, this story only underlines the fact that bringing the Mullahcracy to its knees should be a cinch (well, almost). That is not to say that they should be brought to their knees immediately, but if it was made much clearer - both to us and to them - that it is possible (which much of the West does not seem to realize), and that we are willing to do so if necessary, I imagine we would get a much more compliant attitude from the world's peanut gallery. It would certainly beat this approach.

Post Scriptum:One more reason to start making clear that bad behaviour has consequences:

U.S. officials say they have found smoking-gun evidence of Iranian support for terrorists in Iraq: brand-new weapons fresh from Iranian factories. According to a senior defense official, coalition forces have recently seized Iranian-made weapons and munitions that bear manufacturing dates in 2006. This suggests, say the sources, that the material is going directly from Iranian factories to Shia militias, rather than taking a roundabout path through the black market. "There is no way this could be done without (Iranian) government approval," says a senior official.

How hard is it for the West to realise that there is only one language these autocratsunderstand?

Favourite Quotes

"To my mind, this is irregular. It is un-English; it is un-American; it is French." Mark Twain: Concerning The Jews, Harper's Magazine, March 1898

"This is the sort of pedantry up with which I will not put." Winston Churchill: Pencilled in the margin of a minute issued by a civil servant who was objecting to the ending of a sentence with a preposition and the use of a dangling participle in official documents.

"To those waiting with bated breath for that favourite media catchphrase, the U-turn, I have only one thing to say: You turn if you want to. The lady's not for turning!" Margaret Thatcher: Conservative Party conference speech, Brighton, 10 October 1980

"Who was that lad they used to try to make me read at Oxford? Ship- Shop- Schopenhauer. That’s the name. A grouch of the most pronounced description." P. G. Wodehouse: Carry On, Jeeves – Clustering Round Young Bingo

"Happiness is having a large, loving, caring, close-knit family in another city." George Burns

"Never give in - never, never, never, never, in nothing great or small, large or petty, never give in except to convictions of honour and good sense. Never yield to force; never yield to the apparently overwhelming might of the enemy." Winston Churchill: Harrow School speech, 29 October 1941

"The profits of 'protection' go altogether to a few score select persons—who, by favors of Congress, State legislatures, the banks, and other special advantages, are forming a vulgar aristocracy, full as bad as anything in the British or European castes, of blood, or the dynasties there of the past." Walt Whitman: Prose Works, III. Notes Left Over - 11. Who Gets the Plunder?

"Never in the field of human conflict was so much owed by so many to so few." Winston Churchill: House of Commons speech on August 20, 1940. (at the peak of the Battle of Britain, referring to the RAF airmen)

"And who knows? Somewhere out in this audience may even be someone who will one day follow in my footsteps, and preside over the White House as the President's spouse – and I wish him well." Barbara Bush: Wellesley College commencement address, 1 June 1990

"We shall fight on the beaches. We shall fight on the landing grounds. We shall fight in the fields, and in the streets, we shall fight in the hills. We shall never surrender!" Winston Churchill: House of Commons speech, June 4 1940 (referring to Dunkirk)

"Earnestly hope we shall not have another war with meat-coupons and no sugar and people being killed – ridiculous and unnecessary. Wonder whether Mussolini's mother spanked him too much or too little - you never know, these psychological days." Dorothy Sayers: Busman'sHoneymoon - Diaries of the Dowager Duchess of Denver

"The gunfire around us makes it hard to hear. But the human voice is different from other sounds. It can be heard over noises that bury everything else. Even when it's not shouting. Even when it's just a whisper. Even the lowest whisper can be heard over armies – when it's telling the truth." Sydney Pollack et al.: The Interpreter [2005] (Dedication from the memoirs of Edmond Zuwanie)

"An appeaser is one who feeds a crocodile – hoping it will eat him last." Winston Churchill